-- Posted Wednesday, 15 June 2011 | | Disqus
It was the afternoon in New York that pulled the gold price in the dollar back from the teens in the $1,500 area to $1,525. Asia held the price at that level with London letting it slip to $1,520 and in the euro to €1,059.23. There is not enough movement in the current trading range to draw a conclusion on the next direction for gold in either the euro of the dollar. As we said yesterday, ‘This means it will ebb and flow on a daily basis until the tide takes over.’
At London’s morning Fix it was set at $1,517.75 and in the euro at €1,060.55 up €8.5. The euro retreated in the face of what could be an explosive market situation in Greece to €1: $1.4297.
Ahead of New York’s opening gold was trading at $1,515.80 down $3.0. In the euro, gold stood at €1,062.16 up €11. The euro was weaker at €1: $1.4271
Silver was slightly stronger at $35.27 up 50 cents on yesterday, but still consolidating $15 below its peak. The Fix in London and was at $35.26 up $1.5 on yesterday and trading at $35.02 ahead of New York’s opening.
Gold - Very Short-term
Dollar gold prices again, should have a neutral to slightly stronger bias today in New York.
Silver – Very Short-term
Dollar silver should show a stronger bias in New York today.
Silver & Gold Price Drivers
Part of the plan to bailout Greece is to sell off government owned assets. One of the tragedies of bankruptcy is that when assets come up for sale in it, they have to be sold even at half the price or less. The vultures know this and won’t pay up because they then can turn a profit afterwards. Hence Greece may well not achieve the €50 billion it needs to. Then what? The market consensus is that the E.U. will have to carry it all the way back too solvency in up to a decade’s time. There will have to be considerable creative accounting to sell the effectiveness of a new bailout if the markets are to believe them. In turn Germany will have to decide whether the weak euro [rather than a strong Deutschmark] is worth the trouble. There are now 9 days left for the E.U. to convince the markets.
With Britain hiving off its retail banking from its investment banking, the banks will have less capacity for failures as we saw in the credit crunch. However, worldwide lending to mere mortals is still very low. The focus since 2008 has been to restore the banks to health and not the consumer as we can woefully see in developed world employment figures. Until the monetary aspects of government are effective in doing whatever it takes to invigorate the consumer, economic growth will lack hormones. While that remains the situation, fear of the future will be a common denominator in the developed world breeding uncertainty and instability. This is gold and silver positive!
We cover the implications for gold in macro-economic and currency events in all the issues of the Gold Forecaster and the Silver Forecaster for subscribers. [The Gold Forecaster and Silver Forecaster are a “must-read” for all who want to understand why the gold and silver prices are moving as they are and why.] Subscribe at www.GoldForecaster.com or for silver at www.SilverForecaster.com].
Gold Prices in different currencies which highlight currency moves [We add the Swiss Franc today]:
Swiss Franc – Today: Sf1,291.16: 1 ounce of gold. Friday: 1,273.45: 1 ounce of gold.
U.S. $ - Today: $1,519.00: 1 ounce of gold. Friday: $1,519.00: 1 ounce of gold.
Euro - Today: €1,060.96: 1 ounce of gold. Friday: €1,051.21: 1 ounce of gold.
India –Today: Rs. 67,871.46: 1 ounce of gold. Friday: Rs.67,968.41: 1 ounce of gold.
Regards,
Julian D.W. Phillips for the Gold & Silver Forecasters
-- Posted Wednesday, 15 June 2011 | Digg This Article
| Source: GoldSeek.com
